Allenergy, Inc. Announces New Drilling Program in Kansas

INDEPENDENCE, Kan., Sept 18, 2008 /PRNewswire-FirstCall via COMTEX/ -- Allenergy, Inc. (Pink Sheets: ALRY), an independent oil and gas producer focused on Southeastern Kansas, today announced it has submitted a NOI and has been approved to drill the Bane 1-A well on the Bane lease located in Chautauqua County, Kansas.
This lease was acquired as part of Allenergy's growth plan to drill wells with deeper formations with greater bottom hole pressure. The Company is confident this 160 acres will improve its BOPD (barrels of oil per day) to keep in line with Allenergy's growth program. The Bane 1-A will be drilled to the Wayside formation at approximately the depth of 1500'. Drilling pits are being prepared for the mud rig to move in and commence drilling next week.

Simultaneously, an air rig will be moved to the Ball lease to drill the G4-20 also located in Chautaugua County. The objective of this well is to determine the extension of the Redd formation as found in previous wells drilled on the Longton Anticline. "The production on the drilled wells is still inconsistent in numbers and certainly not to our expectations. The last two months of weather has not allowed access for long enough periods of time for Allenergy to accomplish the necessary adjustments and to install the proper equipment to stabilize the oil and gas numbers. The G4-20 well is in close proximity to the existing flow lines to enable crews to put this well in production," Mr. Sanford said.

"We are very excited to be able to drill these two wells at nearly the same time to make up for lost time and to maintain our growth program," Allenergy's CEO said.

About Allenergy: Allenergy, Inc. (Pink Sheets: ALRY) is an independent energy company strategically focused on Southeastern Kansas where it currently holds more than 2,700 acres of leased land with more than 150 oil and gas wells on its producing properties.

For more information about the Company, please visit http://www.allenergyinc.com

Note: Certain statements in this news release may contain "forward looking" information within the meaning of rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contacts: Larry Sanford
Lsanford2@aol.com
Allenergy, Inc.: 620/331-9992

E&E Communications Paul Knopick, (949) 707-5365
pknopick@eandecommunications.com

SOURCE Allenergy, Inc.

URL: http://www.allenergyinc.com
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